KUALA LUMPUR: Eco World Development Group Berhad (EcoWorld Malaysia) announced its results for 3Q 2024 today. Key highlights include the following:

• EcoWorld Malaysia surpassed its FY2024 sales target of RM3.5 billion in 10 months of FY2024.
• A breakdown of YTD sales achieved by revenue pillars as at 31 August 2024 is set out below:

• Revenue and gross profit for 3Q 2024 increased by 10.4% and 27.1%, respectively, compared to 3Q Gross profit margin improved from 27.2% in 3Q 2023 to 31.3% in 3Q 2024.
• The Group’s Profit after Tax (PAT) for 3Q 2024 was RM80.4 million, 21.3% higher than 3Q 2023 and 14.8% higher than 2Q 2024.
• 3Q YTD 2024 PAT stood at RM220.1 million, an increase of 18.3% compared to 3Q YTD
• As at 31 July 2024, net cash flows generated from operating activities amounted to 6 million, 55.2% higher than the RM423.7 million generated in the prior year corresponding period.
• The Group’s net gearing ratio as at 31 July 2024 further reduced to 0.21 times, from 0.24 times in 2Q 2024, with cash balances (including deposits and short-term funds) reaching a record high of 55 billion.
• As at 31 August 2024 EcoWorld Malaysia’s future revenue increased to RM4.49 billion, providing both near and mid-term future earnings and cashflow visibility to the Group.
• Premised on the above results, the Board of Directors declared a second interim dividend of 2 sen per share in 3Q 2024 which is payable in October 2024. Total dividends declared to-date for FY2024 amount to 4 sen per share.

Comments on EcoWorld Malaysia’s performance by Dato’ Chang Khim Wah, President & CEO

EcoWorld Malaysia crossed our full year sales target of RM3.5 billion sales in 10 months of FY2024. From a regional perspective, Iskandar Malaysia was the largest contributor, accounting for 63% of the Group’s total YTD sales, followed by 27% from the Klang Valley and 10% from Penang.

The Group’s industrial segment continues to power ahead, with RM1.05 billion sales achieved as at 31 August 2024, exceeding the full year record of RM1.04 billion achieved in FY2023. Recognising the huge potential for growth in this market, we launched our fifth revenue pillar, QUANTUM, on 1 August 2024 to focus on industrialists and service providers in the digital and high-technology space.

EcoWorld’s first QUANTUM park, namely QUANTUM Edge in Kulai, Iskandar Malaysia, has recorded RM626 million sales up to 31 August 2024. Following its first sale of 123.141 acres of industrial land to Microsoft Payments (Malaysia) Sdn. Bhd. for RM402.3 million (RM75 per sq ft), we sold another 57.081 acres to Asia’s leading data centre provider, Princeton Digital Group. This second sale was sealed on 16 August 2024 for a cash consideration of RM223.8 million (RM90 per sq ft).

Both deals are in line with the Group’s strategy of identifying market leading players to catalyse our industrial parks and accelerate the development timeline of our projects, which creates positive spillover effects for EcoWorld Malaysia and our surrounding communities.

Malaysia has gained an excellent reputation globally as an ideal location for digital, high-technology and high-value added manufacturing ventures. Backed by proactive Government initiatives to develop the nation as the regional hub for such investments, particularly as our country moves towards the ASEAN 2025 chairmanship, the already strong industrial demand we have been seeing has been further amplified.

We are confident that the Group, through our sizeable, diversified yet complementary Eco Business Parks and QUANTUM pillars, will be able to meet the heightened industrial demand as we are able to cater to both traditional industrialists as well as technopreneurs and new economy players. Our close engagements over the last 6 months with global technology leaders effectively fast-tracked our evolution as an industrial developer. By improving our understanding of their specific needs, expectations and requirements, we have been able to better serve a wide range of players in the digital and high-tech sectors. Further, such knowledge and experience will help us improve the planning of new projects going forward, thus opening up additional avenues for us to enlarge our industrial property market share.

Apart from industrial, our other revenue pillars also performed strongly.

On the residential front, the Group’s Eco Townships and Eco Rise pillars recorded a combined total of RM2.0 billion sales up to 31 August 2024. Upgrader homes priced above RM650,000 made up 83% of Eco Township sales, demonstrating the strong fundamental demand for our higher-end landed products.

Eco Rise projects contributed RM909 million in YTD sales, which is a historic high from this pillar. The 10-month sales achieved substantially exceeded full year sales of RM509 million recorded in FY2023, making Eco Rise the Group’s fastest growing revenue pillar. Our duduk apartments alone brought in RM775 million sales with more than 1,800 units sold. This attests to the Group’s ability to create a product that has been able to address the lifestyle needs and aspirations of its target customer group at an attainable price point, making it highly sought after by young urbanites.

Our commercial products under Eco Hubs brought in RM454 million sales to-date, with contributions from newly launched strata shops and shop offices in the Klang Valley and Penang.

The Group is also scaling up our place-making efforts, particularly at our highly popular duduk developments, with Huni Square and Se.Ruang Square commencing operations within the recently completed Huni D’ Eco Ardence and Se.Ruang D’ Eco Sanctuary.

Riang Square shop offices have also been launched for sale ahead of the upcoming launch of Riang D’ Eco Majestic in the Klang Valley. The presence of these commercial hubs will allow current and future residents to enjoy a wide range of amenities with ample retail, food & beverage, and lifestyle options within the immediate vicinity of their homes.

Meanwhile, the Group’s financial position continues to strengthen, with RM657.6 million cash generated from operating activities in 9 months of FY2024, surpassing the full year cash generated of RM572.2 million in FY2023. Our cash balances stand at RM1.55 billion as at 31 July 2024, which is an all-time high for EcoWorld Malaysia, enabling a further reduction of our net gearing ratio to 0.21 times.

This puts us in a highly favourable position to acquire more landbank. On this note we are actively working on several potential landbank acquisitions to broaden and deepen EcoWorld Malaysia’s market share, which will pave the way for robust and sustainable growth in the future.